Dell Technologies Inc (DELL)
Debt-to-capital ratio
| Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Nov 3, 2023 | Aug 4, 2023 | May 5, 2023 | Feb 3, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 30, 2020 | Jul 31, 2020 | May 1, 2020 | Jan 31, 2020 | Nov 1, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 17,811,000 | 19,382,000 | 19,012,000 | 20,119,000 | 20,177,000 | 22,962,000 | 23,015,000 | 20,562,000 | 20,287,000 | 21,197,000 | 21,131,000 | 31,699,000 | 37,167,000 | 37,935,000 | 32,865,000 | 43,325,000 | 43,608,000 | 48,353,000 | 44,319,000 | 44,727,000 |
| Total stockholders’ equity | US$ in thousands | -2,894,000 | -2,822,000 | -2,404,000 | -2,664,000 | -2,772,000 | -3,023,000 | -3,122,000 | -3,469,000 | -2,860,000 | -2,462,000 | -1,685,000 | 8,954,000 | 4,825,000 | 3,487,000 | 2,479,000 | 883,000 | -419,000 | -1,614,000 | -1,574,000 | -1,804,000 |
| Debt-to-capital ratio | 1.19 | 1.17 | 1.14 | 1.15 | 1.16 | 1.15 | 1.16 | 1.20 | 1.16 | 1.13 | 1.09 | 0.78 | 0.89 | 0.92 | 0.93 | 0.98 | 1.01 | 1.03 | 1.04 | 1.04 |
August 2, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $17,811,000K ÷ ($17,811,000K + $-2,894,000K)
= 1.19
The debt-to-capital ratio of Dell Technologies Inc has shown some fluctuations over the past several quarters. The ratio has generally been above 1, indicating that the company relies more on debt financing than equity to fund its operations and growth.
From Q4 2019 to Q3 2022, the debt-to-capital ratio remained relatively stable, ranging between 1.04 to 1.20. However, there was a significant decrease in Q4 2022 and Q1 2023, where the ratio dropped to as low as 0.78, before starting to increase again.
This fluctuation suggests that Dell may have taken steps to reduce its debt levels in late 2022 and early 2023, potentially through debt repayment or other deleveraging strategies. However, the ratio has started to climb back up in recent quarters, indicating a possible shift back towards higher debt levels relative to capital.
Overall, Dell's debt-to-capital ratio indicates a moderate level of leverage in its capital structure, which could impact its financial flexibility and risk profile. It is important for investors and stakeholders to monitor this ratio alongside other financial metrics to assess the company's overall financial health and stability.
Peer comparison
Aug 2, 2024